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Microsoft Agrees to $20M Settlement Over Privacy Breach Involving Minors

Microsoft faces a hefty fine as they settle children's online privacy charges.

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Microsoft logo

Microsoft's $20M Settlement with the FTC

Tech giant Microsoft (NASDAQ: MSFT) has agreed to pay a significant $20 million to settle charges levied by the U.S. Federal Trade Commission (FTC). The charges revolve around allegations that the corporation unlawfully gathered personal data from underage users without obtaining parental permission, as stated by the FTC.

Accusations of Violating Children's Online Privacy

In their formal charges, the FTC accused Microsoft of violating the U.S. Children's Online Privacy Protection Act (COPPA). These violations included obtaining personal details from children registered on its Xbox gaming system without informing their parents or getting their approval. Furthermore, the tech titan is alleged to have retained this personal data.

Microsoft's COPPA Violations: Details

Microsoft has come under scrutiny for collecting personal information from minors who used their Xbox gaming system and retaining this sensitive information. The FTC asserts that these actions constitute a clear violation of COPPA regulations, prompting Microsoft to settle the charges with the $20 million fine.